Alcoa Inc. (NYSE:AA) is set to report its third quarter earnings after the markets are closed today. The stock has performed poorly in the last year, falling over 24%. The company has not been a good indicator of the economy in recent months. Even when Alcoa announced a “good” quarter within the last year, the stock rallied slightly and the plummeted over time.
Alcoa specializes in manufacturing and producing aluminum products. However, a better way to play any good news that comes out of Alcoa, is to buy any other materials stock. When Alcoa beats estimates it tends to bring up its entire sector, including the other aluminum and steel stocks. A company such as US Steel has even outperformed Alcoa on good earnings. Alcoa is not the best long term play, as it has disappointed investors so often. When the material stocks get wet, Alcoa seems to rust the most.
Showing posts with label Alcoa. Show all posts
Showing posts with label Alcoa. Show all posts
Thursday, October 7, 2010
Thursday, September 30, 2010
Alcoa Stands for First
Alcoa will once again lead off earnings season, when they release their Q3 results on October 7. Alcoa is one of the leading aluminum suppliers in the world. Its products include precision castings and industrial fasteners among other things.
Alcoa stock has had the second worst performance in the Dow, for stocks that have remained in the Dow since March 2007. Among the worst performers are General Electric which dropped from $40 to 16 and Bank of America which has dropped from $53 to 13. Most of the other stocks in the Dow Jones stocks have had better results.
Alcoa Inc. (Alcoa) is engaged in the production and management of primary aluminum, fabricated aluminum, and alumina combined. The Company’s products are used worldwide in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications. Alcoa is a global company operating in 31 countries. Based upon the country where the point of sale occurred, the United States (U.S.) and Europe generated 52% and 27%, respectively, of Alcoa’s sales during the year ended December 31, 2009. In addition, Alcoa has investments and operating activities in Australia, Brazil, China, Iceland, Guinea, Russia, and the Kingdom of Saudi Arabia. Alcoa’s operations consist of four worldwide segments: Alumina, Primary Metals, Flat-Rolled Products, and Engineered Products and Solutions. In August 2010, the Company acquired Traco, a maker of windows and doors for the commercial building and construction market.
Alcoa stock has had the second worst performance in the Dow, for stocks that have remained in the Dow since March 2007. Among the worst performers are General Electric which dropped from $40 to 16 and Bank of America which has dropped from $53 to 13. Most of the other stocks in the Dow Jones stocks have had better results.
Alcoa Inc. (Alcoa) is engaged in the production and management of primary aluminum, fabricated aluminum, and alumina combined. The Company’s products are used worldwide in aircraft, automobiles, commercial transportation, packaging, building and construction, oil and gas, defense, and industrial applications. Alcoa is a global company operating in 31 countries. Based upon the country where the point of sale occurred, the United States (U.S.) and Europe generated 52% and 27%, respectively, of Alcoa’s sales during the year ended December 31, 2009. In addition, Alcoa has investments and operating activities in Australia, Brazil, China, Iceland, Guinea, Russia, and the Kingdom of Saudi Arabia. Alcoa’s operations consist of four worldwide segments: Alumina, Primary Metals, Flat-Rolled Products, and Engineered Products and Solutions. In August 2010, the Company acquired Traco, a maker of windows and doors for the commercial building and construction market.
Friday, July 16, 2010
Down Jones Industrial Average
At early morning most stocks are declining on the Dow Jones. Bank of America is down over 6%. BAC reported a profit of nearly 3 billion and stated that non performing loans declined as charge-offs of loans gone sour fell. Traders sent BAC lower on skepticism of their ability to execute in the future. General Electric reported a profit of over 3 billion. GE's top line growth fell from the previous year which is in focus today by the markets. The markets have sent GE shares spinning 3%. Alcoa is down another 1.3% today in trading news. There is a quiet whisper on Wall Street that Alcoa will be replaced in the Dow Jones. Pfizer is currently level on the day with a quiet whisper on their ability to develop new drugs. This has sent Merck tumbling .36% as a new push by Pfizer means declining sales for Merck.
Tuesday, July 13, 2010
Al KO'd
Alcoa reported a profit of income from continuing operations of $137 million or $0.13 per share for their second quarter of 2010. Revenue for the company was up 6% from the first quarter. Alcoa did this despite a lower price of aluminum than in the first quarter. Signs of Alcoa benefiting from the U.S. economy improving are obvious. In many markets Alcoa saw strong revenue growth from the previous quarter with packaging (+17%), commercial transportation (+10%), building and construction (+9%), distribution (+5%), industrial gas turbines (+5%) and aerospace (+5%).
The CEO stated "We improved profits and revenues and maintained our solid cash position,” said Klaus Kleinfeld, Alcoa Chairman and CEO. “The top and bottom line growth was driven by higher volumes from stronger end markets and continued gains from our productivity programs."
Recently Alcoa was trading up 1.4% to $11.02
The CEO stated "We improved profits and revenues and maintained our solid cash position,” said Klaus Kleinfeld, Alcoa Chairman and CEO. “The top and bottom line growth was driven by higher volumes from stronger end markets and continued gains from our productivity programs."
Recently Alcoa was trading up 1.4% to $11.02
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